BMW Sells Its EV In China Way Cheaper Than Europe

China has the right to offer much cheaper cars than everywhere for a number of reasons: the absence of customs duties, transport and export costs, cheaper distribution networks, and an extremely sharp price war among manufacturers. However, in the case of the iX3 model intended for the Chinese market, the fact that it is sold for 30,000 euros less than in Europe is due to a completely different reason: the battery.

In Europe, BMW retains a more affluent clientele that doesn’t really want to compromise, especially on range. But in China, things are vastly different. Enumerating the reasons why cars sold in China and Europe sometimes have such a price difference would take quite a long time. But for certain models, explanations are quite easy to find. We have already mentioned the case of Volkswagen models that are sold in China at extremely low prices. Especially the VW ID.3 model, which, in addition, uses an extremely aggressive discount to bring its price down to the level of a regular basic Dacia Sandero with a gasoline engine.

Why are electric cars drastically cheaper in China?

How is that possible? Simply because it is an ID.3 model that is manufactured in China with a local manufacturing partner, with a significantly lower labor cost compared to Europe. At BMW too, it is enough to look at the Chinese catalog to understand the gap that exists between the Chinese and European offerings. The i5 eDrive40 model in China starts at 42,000 euros (exclusively in the extended L version), while in major European markets it costs 76,000 euros.

The price difference of more than 30,000 euros seems realistic, since the same price difference is observed in the range of the new BMW iX3. These differences are not so great in models with internal combustion engines for one simple reason: as colleagues from the German “Auto Bild” remind us, the chemical composition of the battery differs depending on the version. However, that doesn’t explain everything: the Chinese i5 L features a 97 kWh NMC battery in the eDrive50 variant. This same version carries a battery of “only” 83 kWh. And yet, the price difference between the two models is huge.

The Chinese have different priorities than the Europeans.

But with the iX3 we find real differences: the Chinese version, also with a longer wheelbase, uses an LFP (lithium-iron-phosphate) battery, while the European variant has an NMC (nickel-manganese-cobalt) battery. Recall that this chemistry, with a higher energy density, is more expensive to manufacture than an LFP battery. Here, then, is a good part of the explanation for the price of the Chinese iX3, which starts at only 34,400 euros, while in Serbia the starting price is 78,000!

Does that still justify such a price difference? Let us remind you that the Chinese iX3 is produced in China, at the factory in Shenyang, together with the BMW partner “Brilliance Automotive.” That’s another explanation for the price difference. In any case, Chinese customers do not have the same expectations as Europeans. While range is certainly important in electric vehicles, there probably isn’t the same obsession with this feature as in Europe. After all, the range of the most expensive iX3 in China is announced at 919 km according to the Chinese homologation cycle. When the usual 25% is subtracted to get the WLTP value, it comes to around 690km of range, which is close to the European iX3 eDrive50. How is this possible? Only the Chinese know!

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